- NZD/USD regains lost ground to reach the mid-range of 0.6900.
- The kiwi extends recovery favoured by a softer USD.
- NZD/USD is expected to keep advancing towards 0.7200.
The New Zealand dollar has appreciated against its US counterpart for the second consecutive day, returning above 0.6900, after bouncing up from five-week lows at 0.6860, to reach 0.6945 so far. In a bigger picture, however, the pair remains negative, set for its fourth consecutive weekly decline
The kiwi picks up with the US dollar on retreat
The NZD/USD has regained some ground over the last sessions, favored by a somewhat softer greenback. US Treasury yields, which had been boosting the recent USD rally have pulled back, with the benchmark 10-year note falling below 1.5% for the first time since Monday. Furthermore, the lack of progress on the US debt ceiling fight is raising concerns about the consequences of a government shutdown, adding negative pressure on the US dollar.
On the macroeconomic calendar, September’s US ISM Manufacturing PMI has beaten expectations, increasing to 61.1 in September from 59.9 in August. Beyond that, US consumer spending, a highly relevant contributor to US economic activity, increased 0.8% in August, against a market consensus of 0.6%. The dollar, however, has been practically unaffected.
NZD/USD expected to keep appreciating towards 0.7200 – CIBC
From a wider perspective, the FX Analysis team at CIBC expects the kiwi to remain appreciating, aiming for 0.7200: “Support for NZD/USD is seen firm down to 0.68 and we expect any weakness to be contained ahead of there (…) “There is a question of either a 25 or 50bps hike at the meeting on October 6th, though regardless, a hawkish message will prevail. We anticipate NZD/USD regaining ground, potentially toward 0.72.”
Tech levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.